Benchmark equity indices opened higher on May 17. As of 09:16 IST, the Sensex was up 262.08 points or 0.49% at 53,235.92. Nifty rose 87.20 points or 0.55% to 15,929.50. About 1429 stocks were up, 299 stocks were down and 58 stocks were unchanged.
Hindalco, ONGC, JSW Steel, Tata Steel and IndusInd Bank were among the top winners at Nifty. NTPC, Power Grid Corp, Tech Mahindra, TCS and Cipla were among the major laggards.
Asian stocks rise in early trading
Asian stocks rose on Tuesday as investors gauged the economic outlook amid high food and fuel costs, tightening monetary parameters and China’s efforts to stamp out Covid.
MSCI’s broadest index of Asia-Pacific stocks outside Japan gained 0.84% on Tuesday but is still down, with the index down 6.7% so far this month. US equities ended the previous session with slight losses. In Tokyo, the Nikkei was flat in early trading, while in Australia, the S&P/ASX200 index gained 0.34%.
Hong Kong’s Hang Seng index rose 1.2% and mainland China’s CSI300 index gained 0.07%. The U.S. dollar index, which tracks the greenback against a basket of currencies from other major trading partners, was flat in Asian trade at 104.1.
US stocks close positive
Dow industrials had a marginally positive finish on Monday, while the S&P 500 saw its gains evaporate entirely in the final hour of trading, extending a stock market selloff following a batch of weak data from from China and the United States which fueled further concerns about the state of the global economy.
The S&P 500 was down 0.4%, while bigger losses were seen on the Nasdaq Composite which fell 1.2%, to 11,664. The Dow Jones index was barely positive, up only 0.08%.
On Monday, the New York Fed’s Empire State Business Conditions Index, an indicator of manufacturing activity in the state, fell 36.2 points to minus 11.6 in May. Economists expected the index to fall slightly to a solid 16.5.
US GDP is expected to grow by 2.4% according to Goldman Sachs
Goldman Sachs economists, led by Jan Hatzius, said they now expect US gross domestic product to grow 2.4% this year and 1.6% in 2023, from 2.6% and 2.2% before. They believe there is “a very, very high risk factor” that the United States is heading into a recession as the Federal Reserve tightens policy to combat high inflation. Former Fed Chairman Ben Bernanke told The New York Times that the United States could enter a period of stagflation for the first time since the 1970s.
The two-year yield, which rises on traders’ expectations of a hike in the fed funds rate, touched 2.578% from a US close of 2.568%. “Markets currently estimate that the fed funds rate will be 53 basis points higher at the next meeting in June and 200 basis points higher by the end of the year,” said Imre Speizer, head of the Westpac’s New Zealand strategy.
The dollar rose 0.06% against the yen to 129.24. It is approaching its highest this year of 131.34. The single European currency rose 0.1% on the day to $1.0437, after losing 0.99% in a month.
Decline in US crude
U.S. crude fell 0.18% to $113.99 a barrel. Brent crude was slightly higher at $114.40 a barrel. Gold was slightly higher. Spot gold was trading at $1,826.7072 an ounce.
LIC will be listed on the stock exchange today
Life Insurance Corporation of India (LIC) will go public tomorrow, following the initial public offering (IPO) which was oversubscribed nearly three times the size of the issue.
The government has set the issue price for LIC shares at Rs 949 apiece, the upper end of the IPO price range, earning the Treasury about Rs 20,557 crore.
According to recent gray market trends, unlisted LIC shares were selling at Rs 936 per share on Saturday, a discount of Rs 13 from the upper end of the IPO price range.
According to recent gray market trends, the company’s unlisted shares were selling at 936 rupees per share on Saturday, May 16, a discount of 13 rupees from the upper end of the IPO price range. However, the stock’s modest float may limit the stock’s post-listing decline.
RBI could raise rates by 75 basis points by August: SBI economists
At least 59% of the acceleration in inflation is attributable to the impact of the geopolitical conflict sparked by the Russian invasion of Ukraine, SBI economists said on Monday.
Faced with the heightened inflation situation – the headline figure touched nearly 7.8% for April, and the RBI is expected to raise rates by another 0.75% to bring the repo rate back to the pre-pandemic level of 5.15%, they added.
“Against the continued rise in inflation, it is now almost certain that the RBI will raise rates in the next June and August policy and bring it back to the pre-pandemic level of 5.15% by August. “, he said, adding that the biggest question the central bank must ask is whether inflation will significantly slow due to such rate hikes if the war-related disruptions do not come. do not subside quickly.
The results will be published today
The following companies will release their quarterly results today: Bharti Airtel, Indian Oil Corporation, DLF, PI Industries, Abbott India, Bajaj Electricals, Bajaj Healthcare, EID Parry (India), Indoco Remedies, IRB Infrastructure Developers, Jubilant Ingrevia, Kajaria Ceramics , Dr. Lal PathLabs, Minda Corporation, Sapphire Foods India, Fairchem Organics, Galaxy Surfactants, GMR Infrastructure, NOCIL, Nucleus Software Exports, Sun Pharma Advanced Research Company and Zydus Wellness will be in focus ahead of March quarter results on 17 may.
Stocks under F&O ban
Three stocks – GNFC, Indiabulls Housing Finance and Punjab National Bank – have been under an F&O ban on NSE since May 17.
(With contributions from Reuters, agencies)
Posted: Tuesday May 17th 2022, 09:22 IST